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Mexichem Appeals U.S. International Trade Commission Ruling

Mexichem appeals ruling issued on November 12, 2014 stating that import of refrigerant gas from China do not harm U.S. industry.

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Tlalnepantla, State of Mexico Mexichem, S.A.B. de C.V. announced that on January 6, 2015, one of its subsidiaries, Mexichem Fluor, appealed the U.S. International Trade Commission (ITC) ruling that the import of Chinese refrigerant gas do not harm U.S. industry.

The appealed ruling stated that the import of refrigerant gases from China, specifically R-134a, HFC-134a and 1,1,1,2 Tetrafluorethane, did not result in “material injury or threat of material injury” to the U.S. refrigerant gas industry. The ruling was issued with two votes in the affirmative, and four in the negative. The decision of no injury or threat of injury resulted in the elimination of dumping duties of 280.67% and countervailing duties averaging 11.14% found by the Department of Commerce.

Mexichem expects the appeal before the United States Court of International Trade to take approximately one year.

Mexichem’s refrigerant gas business is part of its Fluorine Chain and represented 3% of Mexichem’s revenues and 3% of its EBITDA in the first nine months of 2014. Mexichem’s upstream fluorspar business, which comprises the remainder of the Fluorine Chain’s operations, is unaffected by the ruling made on November 12, 2014.

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